The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal are examined.

1. Article 13(1) of the former Value-Added Tax Act (amended by Act No. 9915, Jan. 1, 2010; hereinafter the same) provides that the tax base of value-added tax on the supply of goods or services shall be the sum of the values in each of the following subparagraphs (hereinafter “value of supply”). Subparagraph 1 of the same Article provides that “if the price is paid in cash,” “the price is paid in cash,” and subparagraph 2 of the same Article provides “market price of the goods or services supplied by the person himself/herself”

In addition, Article 48(1) of the former Enforcement Decree of the Value-Added Tax Act (wholly amended by Presidential Decree No. 24638, Jun. 28, 2013; hereinafter the same) provides that the tax base under Article 13(1) of the former Value-Added Tax Act includes all monetary values having a quid pro quo relationship, regardless of the pretext, such as the price, charge, fee, and any other fee

Meanwhile, Article 13(2) of the former Value-Added Tax Act provides for “amount that is not included in the tax base”. Of them, Article 13(2)1 of the former Value-Added Tax Act provides for “amount of discount”.

In addition, Article 52(2) of the former Enforcement Decree of the Value-Added Tax Act provides that “The overcharge amount under Article 13(2)1 of the Act shall be the amount which deducts a specified amount from the ordinary supply value at the time of supply of the goods or services in accordance with the payment of quality, delivery cost, and other terms and conditions of supply”.

Examining the language, contents, and purport of Article 13(1) of the former Value-Added Tax Act and Articles 48(1) and 52(2) of the former Enforcement Decree of the Value-Added Tax Act, where a supplier receives money or money from a third party who is not a person who receives goods or services in connection with any supply, and where such payment is in a quid pro quo relationship, it shall be included in the tax base